Pentair (PNR) Stock Gains After Trian Fund Takes Stake

Pentair (PNR) shares are up after Trian Fund Management discloses a 7.24% stake in the company.

NEW YORK (TheStreet) -- Shares of Pentair (PNR) are up 4.9% to $67.57 on heavy trading volume Tuesday after Trian Fund Management announced a stake in the industrial equipment company.

Trian Fund Management now holds a 7.24% in the pump and valve maker, according to the Wall Street Journal. The activist investor is reportedly asking he company to considering acquiring rivals to consolidate the market for specialized parts.

The activist investor has held talked with Pentair Chairman and CEO Randall Hogan for more than a month, and they agree on the future potential for the company, according to the Journal.

About 2.7 million shares of Pentair were traded by 10:18 a.m. Tuesday, above the company's average trading volume of about 1.4 million shares a day.

TheStreet Ratings team rates PENTAIR PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate PENTAIR PLC (PNR) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."